Faculty of Commerce, Law and Management (ETDs)

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    The impact on brand product sales of transitions from traditional to digital marketing solutions
    (University of the Witwatersrand, Johannesburg, 2023) Sekati, Moseki
    A lot of FMCG companies have been investing money in marketing activities with the aim of improving their business sales turnover, and this has been seen in both traditional marketing and digital marketing. However, literature show that there has been lack of knowledge on which strategy, digital or traditional, to invest in and what their benefits are. This study serves to address the identified research gap with regards to FMCG companies in South Africa. The main objective of this study is to investigate the positive effect of investment, implementation and understanding of digital marketing on financial performance. This study engages a quantitative research approach and collection of data through a research questionnaire that was constructed to answer the research questions. A causal design with a purposive sampling technique was used to collect data from a sample size 100 participants. The data was analysed using SPSS. The research findings had 4 out of 5 the hypotheses that were found to be significant, and another 6 th additional hypothesis that was computed. These hypotheses proved that investment in digital marketing; implementation and utilization of digital marketing have a positive impact on financial performance; and utilization of traditional marketing has a positive impact on financial performance. The 6 th computed hypothesis test showed that financial performance has an impact on preference for digital marketing. Companies in the FMCG and students in marketing can benefit from the finding of this study. This study makes recommendations for future research for understanding or knowledge of digital marketing, and what other important operations are a benefit of digital marketing
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    Impact of the Environmental, Social, and Governance reporting framework on practices in JSE listed companies
    (University of the Witwatersrand, Johannesburg, 2023) Manyike, Nyanisi Nyeleti
    A company's long-term sustainability and financial performance are the most important goals all CEOs and managers aim to achieve. One way of achieving these objectives is by integrating ESG into a company’s investment decision-making processes. ESG reporting ensures that an organization is accountable for Environmental, Social, and Governance issues. The proposition that the author makes is that integrating ESG in investment decision-making processes will result in a company’s long-term sustainability together with improved financial performance. The study sampled 42 out of 100 respondents from an Asset Manager. The results show that, although some respondents do not fully agree that ESG integration in investment decision-making processes improves its financial performance, the majority hold the view that it achieves this goal and most particularly long-term sustainability of a company. As such, the findings from the 42 respondents confirm the two propositions made by the author. Although there is high agreement that ESG integration accomplishes the two said objectives, there are respondents who do not agree with the same. This study did not probe reasons for varying views, as such it is recommended that a mixed methods study be conducted in the future to understand in-depth reasons behind the responses
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    The effect of the Road Accident Fund’s organisational culture on efficiency and performance
    (University of the Witwatersrand, Johannesburg, 2023) Mayana, Thokozani; Matshabaphala, Manamela
    This research contributes to the body of knowledge on the organisational culture of State- Owned Entities (SOEs), with the research setting being the Road Accident Fund (RAF). The purpose of the study is to investigate the effect of organisational culture on efficiency and performance within the SOE. This is important as SOEs are established to fulfil the delivery objectives of the state while contributing to the fiscus of the country. They are intended to add public value. The methodology applied in the study was a quantitative research approach, using a post positivist paradigm where 156 responses were obtained from employees at different levels at the RAF. The results of the study showed that organisational culture factors such as uncertainty avoidance, customer focus and values system, employee empowerment and involvement and governance were good at the RAF, while innovation and technology, as well as rewards and recognition were low. Additionally, operational efficiency was seldom to sometimes in place at the RAF with only 5% indicating that operational efficiency was in place most of the time. Organisational culture factors, when assessed individually, influence operational efficiency, but when combined, innovation and technology is the main statistically significant predictor of operational efficiency. Furthermore, operational efficiency is a predictor of performance, in particular from the customer perspective, as well as the financial which is aligned to the SOE in terms of the purpose of the SOE whichis to provide services to road accident claimants, their families and their representatives. The research may have been impacted by surrounding circumstances. Although assured of anonymity, some respondents may have not been completely certain that their identities and responses would remain anonymous. Recommendations in line with improvements in the rewards and recognition system, as well as technology and innovation, were made with the intention that if they are incorporated into the SOE’s turnaround strategy, they will improve the organisational culture, operational efficiency and performance of the SOE
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    The Impact of IFRS 15 Adoption on the Financial Performance of JSE-Listed Companies in South Africa
    (University of the Witwatersrand, Johannesburg, 2022) Tchouaken Monkam, Marie Gisele; Alovokpinhou, Sedjro Aaron
    This study investigates whether the adoption of the IFRS 15 standard has influenced the financial performance of firms listed on the Johannesburg Stock Exchange (JSE). The study analysed a sample of 188 firms from 2015 to 2020, using descriptive statistics, correlation and regression analysis to estimate the results. To establish the impact that the IFRS 15 standard has on real returns on equity and return on assets, while controlling other covariates, a Pooled OLS regression and a dynamic panel-GMM analysis were conducted. The IFRS 15 standard was measured as a dummy variable, while the financial performance was measured using accounting measures: Return on Assets (ROA) and Return on Equity (ROE). Endogeneity issues were addressed, and data analysis was performed on an unbalanced panel using the panel pooled OLS and two-step system GMM. The results revealed that the implementation of the IFRS 15 standard in 2018 had a significant impact, either negative or positive, on the financial performance of firms listed on JSE. This suggests that the introduction of new accounting standards impacts the financial performance (ROA, ROE) of companies listed on the JSE
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    Climate Mitigation Disclosure on Financial Performance and Market Stability: Evidence from South Africa
    (University of the Witwatersrand, Johannesburg, 2023) Ramafoko, Mokate George; Alovokpinhou, Sedjro Aaron
    This paper investigates the impact of climate risk disclosure in South Africa on the market stability and performance. The main proxies of climate risk used in the study are greenhouse gas emission intensity and environmental performance rating. The study uses a difference-in-difference method to isolate the effect of climate risk disclosure on a portfolio of highly exposed firms. Firstly, the results show that high greenhouse gas emitting firms have lower returns and higher volatility before and after controlling for time effects. However, the difference-in-difference coefficient from the analysis shows evidence of a weak correlation at a 10% significance level between disclosure of climate risk on the market performance of high greenhouse gas emitting firms relative to low emitters. Secondly, the study could not establish evidence that stocks of high greenhouse gas emitting firms experience higher volatility after the disclosure of their emission inventory. Results of the impact of environmental ratings on stock returns after adjusting for the time effect show that firms rated by the Climate Disclosure Project have lower returns than highly rated firms. However, the difference-in-difference coefficient is weak at a 10% significance level. The results are inconsistent with previous studies in developed countries where a strong correlation between climate risk and stock performance has been established. The findings from the study highlight that either climate risk is already factored into the stock prices, or the risk is viewed as immaterial to have an immediate impact on the equity market. The study addresses the existing literature gap on the effect of climate risk on developing countries' market stability and performance. Future work is required considering the evolving global focus on climate risk as a priority and the potential financial impact on firms’ sustainability
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    The Impact of Technology in the Productivity of Corporate Banking: An Assessment of Emerging Markets
    (University of the Witwatersrand, Johannesburg, 2022) Moyo, Nkosi
    This paper assesses the role of technology within the banking environment and seeks to find a correlation between increase in technological investment and the financial performance of banking institutions. This is achieved through a comparative analysis of six banks in two emerging markets to prove that an increase in technological output results in improved productivity and ultimately, financial performance for banks within emerging markets. The paper illustrates how technological advancements in the twenty first century have been contributed significantly to the financial performances of major banks in South Africa and Kenya, to an extent that technology is a quintessential contributor to the increasing success of financial institutions and that even through the advent of the Covid pandemic, the role of technology has increased significantly, to the extent that the relationship and impact between banking and technology is immeasurable
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    The impact of risk factors on the commercial banking sector's financial performance in South Africa
    (2021) Chiyengerere, Nanette
    Banks face numerous financial and non-financial risks in their operations, and the banking sector plays a positive role in the country's economy. This study aims to find the impact of risk factors on the South African banking sector's financial performance. Fixed effects model was selected estimated together with Panel EGLS (cross-section SUR) to account for cross-sectional heteroscedasticity and correlation. Using annual frequency data from South Africa's systematic important financial institutions (SIFI's) banks, namely, ABSA, FirstRand Bank, Nedbank, Capitec, Investec, and Standard Bank. Return on capital employed (ROCE) and net interest margin (NIM) were bank performance measures. The study results showed that capital adequacy ratio, loan to deposit ratio, liquidity ratio, and unemployment are statistically significant determinants of bank performance measured by ROCE. Whereas GDP, nonperforming loans ratio and capital adequacy ratio are statistically significant to bank performance measured by net interest margin. The study concludes that credit risk, liquidity risk, solvency risk, and market risk factors are fundamental factors in determining South African commercial banks' profitability and financial performance. Therefore, banks have to present an appropriate sense of equilibrium when managing risk or to perform their risk management practices with financial performance. Because poor risk management policies can distress banks' performance badly as they influence asset quality and class, leading to increased advance losses.
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    Digital transformation’s role in improving the organisational performance of an Information Technology (IT) company
    (2022) Stofile, Anati
    The potential of digital transformation to improve operational efficiencies and stimulate growth has become a critical path for organisations towards improving their competitive advantage. However, digital transformation requires a significant investment before any real financial benefits can be realised. Due to its focus on optimising business operations, an organisation’s operating model must be realigned to enable efficiency improvements of its core business activities through investments in digital technologies. The benefits of digital transformation are extensively covered in business and academic research, but few mention digital transformation costs. Hence, this study evaluates the positive impact that digital transformation has on an organisation's operational performance and financial performance. In addition to improved operational performance, digital transformation has the potential to bring about higher profitability in the long run by lowering operating costs. However, rising operational and integration costs reduce profits in the short to medium term, taking time before positive net benefits are generated. This study contributes to the literature relating to the impact that digital transformation has on the performance of an organisation by exploring the influence of digital maturity factors on operational and financial performance. Furthermore, the analysis reveals that digital transformation has a much more immediate impact on operational performance (operating margin growth) than on financial performance (gross margin growth).
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    The linkage between capital structure and financial performance: a case of selected technological firms listed in Johannesburg stock exchange
    (2022) Khenisa, Boipelo
    The main objective of this study is to analyse the effect of capital structure on the financial performance of technological firms listed on the Johannesburg Stock Exchange in South Africa. Cross-sectional time-series data was collected from a sample of 14 technological firms over 9 years, yielding a total of 126 observations. The Levin, Lin & Chu test was used to conduct unit root tests on financial performance, capital structure, firm size, firm growth, and macroeconomic control variables. Results indicate that some series were stationary at a level and some at first difference. While return on assets was used as a dependent variable or proxy of financial performance, and debt/equity ratio as a proxy of capital structure, the random effects model was selected in preference to the Fixed Effects model using the Hausman test. Estimates of the random effects model show that the debt/equity ratio had negative and statistically insignificant effects on firms’ financial performance positions. Conversely, the size of the organization and its growth had statistically positive and significant effects on financial performance, with firm size having a more pronounced effect relative to firm growth. The adjusted Rsquared shows that nearly 97 percent of the variation in technological firms’ financial performances is explained by capital structure, firm size, firm growth, and liquidity. Robust checks from stepwise regression results are consistent with the estimates of the random effects model. This study recommends that the management of technological firms should maintain levels of debt that are optimal to avoid the negative effects of high debt burdens on a firm’s financial performance positions.
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    Digital readiness and financial performance in the financial industry: evidence from emerging market economies
    (2022) Ndlovu, Chiedza
    This study examines the impact of digital readiness on financial performance of listed firms in Brazil, Russia, India, China and South Africa. It is based on 1 224 firms across BRICS where 135, 41, 711 and 337 firms represent banks, insurance, investments and real estate industries, respectively. The Arbitrage Pricing Theory was extended by including the digital readiness component from the Network Readiness Index Framework. Generalized Method of Moments regression was used as the main data analysis model. Key findings are as follows: [1] The extended Arbitrage Pricing Theory and the longitudinal research design approach was found to be ideal for the study as supported by model statistics. [2] The current state of enabling infrastructure is not a key determinant of financial performance. [3] Internet affordability effects generally have a positive and significant impact on financial performance of banking and insurance firms. [4] Skills and education have positive and significant impact on financial performance of banking and insurance firms. [5] Financial performance in investments and real estate firms generally respond negatively to variations in digital readiness. [6] Market-based financial performance measures respond better to variations in digital readiness when compared to accounting-based measures of financial performance.